The General Electric Company (GE) has sold its Appliances Division to Haier at $5.6 billion.
Javed Afridi, Chief Executive Officer (CEO) Haier & Ruby, confirmed the deal on social media while stating that, ‘General Electric Company (GE) Appliances Division Now Belongs to Haier. Deal bw Haier & GE valued at $5.6 billion”.
According to reports, apart from mega deals for selling financial assets, General Electric (GE) was also trying to shift away from the appliances business, as this segment didn’t fit well in its core business portfolio.
The General Electric (GE)’s major products include lighting products and services such as industrial-scale lighting solutions and major home appliances like refrigerators, cooktops, dishwashers, and hybrid water heaters.
The appliances and lighting business generated 6.9% of GE’s revenues in 1Q16 but accounted for only 4.6% of profit.
On January 15, 2016, GE agreed to sell its appliances business to Haier for $5.6 billion. However it was stated that the deal is subject to regulatory and other approvals. However now it is confirmed that the deal has been done.
Haier Group is a Chinese multinational consumer electronics and home appliances company. It designs, develops, manufactures, and sells products including air conditioners, mobile phones, computers, microwave ovens, washing machines, refrigerators, and televisions.
According to data released by Euro Monitor, in 2014 the Haier brand had the world’s largest market share in white goods with a 10.2% retail volume market share. This was the sixth consecutive year in which Haier had been the market share leader for major appliances.